Rising England star Raheem Sterling could be heading to Arsenal in a deal which would see Theo Walcott sign for Liverpool.

Walcott's current deal expires at the end of the season and manager Arsene Wenger is reportedly prepared to cash in on the winger after seeing talks over a new contract hit the skids.

The Arsenal boss is a huge admirer of Sterling and, according to The Sun, is prepared to offload Walcott plus £8million in his bid to sign the Liverpool winger in January.

Swap deal: Walcott (right) could be offloaded to Liverpool in an attempt by Arsenal to sign Sterling in January

Earlier this month, Sterling added to the uncertainty over his Liverpool future by withdrawing a tweet that was meant to reassure Anfield fans.

Sterling, who became the country's third youngest international in 100 years after making his debut against Sweden on Wednesday night, sent out mixed messages on Twitter by claiming he was going to sign a new deal on his 18th birthday next month - then removing the message.

International duty: Sterling made his England debut on Wednesday

It followed claims that his advisers were asking Liverpool for £50,000 a week.

Walcott is believed to be holding out for £90,000, but the Arsenal hierarchy are unprepared to meet his demands.

The winger, who will undergo a fitness test before today's North London derby, will be free to talk to other clubs from January 1.